Smurfit-Stone to Sell Brewton Linerboard Mill to GP
Aug. 8, 2007 - Smurfit-Stone Container said that it has reached a definitive agreement for the sale of its Brewton, Alabama, white top linerboard and bleached board mill to Georgia-Pacific for approximately $355 million.
Net proceeds from the sale will be used by Smurfit-Stone for debt reduction, the company said.
"The sale of our Brewton mill is another important step in the execution of our company's transformation strategy," said Patrick J. Moore, Smurfit- Stone chairman and chief executive officer. "As we continue to realign our mill system, we will deliver uninterrupted, high quality white top linerboard products and services to our customers. With the sale last year of our former consumer packaging division, however, the Brewton mill's SBS production no longer fits with our core business."
Smurfit-Stone expects the deal to be completed by the end of September, subject to standard regulatory review and approvals.
The Brewton mill has annual production capacity of approximately 300,000 tons of white top linerboard and 190,000 tons of solid bleached sulfate (SBS).
SOURCE: Smurfit-Stone Container Corp.